In an attempt to boost the crippling economy, Finance Minister (FM), Nirmala Sitharaman has conceded to allocate Rs 10,000 crores for finishing the stalled housing projects that fall under the affordable and middle-income housing sector.

The move will be taken by curating a ‘Special Window’ to provide debt financing for the unfinished housing projects.

Sitharaman, while addressing a press briefing after a cabinet meeting, said that the government shall act as the sponsor of the fund and infuse funds upto Rs 10,000 crore, which will provide relief to developers with unfinished projects and ensure delivery of homes to buyers. 

Sitharaman told the media that 1,600 stalled housing projects or 4.58 lakh homes will benefit from the alternate funding mechanism and the RBI Governor has discussed a viable way to reach out to homebuyers.

She added that the move will help in relieving financial stress faced by a large number of middle-class homebuyers who have invested their hard-earned money.

The Finance Minister mentioned this move will generate considerable employment and will revive the demand of cement, iron and steel industries. The government also expects this move to relieve stress in other major sectors of the economy.

Nirmala Sitharaman added that an AIF (asset alternative fund ) will be created and the government will collaborate with banks like SBI and LIC by putting Rs 10,000 crore and creating funds worth Rs 25,000 crore in all. “The investment will be used to complete housing units worth less than Rs 2 crore in Mumbai, Rs 1.5 crore in Delhi-NCR, Chennai, other metros, and Rs 1 crore in other cities,” she added.

The announcement comes on the back of other measures that have been announced in the past two months, including corporate tax cuts, bank recapitalisation, merging of public banks among others.

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